Contract between Luke and Taylor

Running head: ENGINEERING LAW
Law on Contract
Name of the student:
Name of the university:
Author note

1ENGINEERING LAW
Issue:
The main issue of the case is to determine whether there is any contract made in between
Luke and Taylor.
Relevant laws:
In Australia, the contract is governed by the Contract law and to certain extent,
employment law. The term contract denotes an agreement that is enforceable by law1. Certain
essentials are to be fulfilled regarding the contract. There should be certain offer and
acceptance regarding the contractual subject, there must be certain intentions of the party to
bind themselves with the legal formalities2. There should be certain consideration in the
contractual agreement and the parties must be competent to make the contract. If these
elements are covered by the parties, there must be a contract exists in between them3.
Offer is one of the main criteria regarding the contract. Offer consists of certain
promises to do a particular job. When an offer is made, it is presumed that there is consent of
the person who made it4. There should not be any ambiguity regarding the conditions of the
offer. There is a rule regarding the revocation of the offer. It can be upheld by the offeror at
1 Gul, F. A., et al. "Factors influencing choice of discipline of study—Accountancy,
engineering, law and medicine." Accounting & Finance 29.2 (2015): 93-101.
2 Scott, Geoff, and K. Warren Yates. "Using successful graduates to improve the quality of
undergraduate engineering programmes." European journal of engineering education 27.4
(2013): 363-378.
3 McKendrick, Ewan. Contract law: text, cases, and materials. Oxford University Press
(UK), 2014.
4 Ndekugri, Issaka, and Michael Rycroft. JCT98 Building Contract: Law and Administration.
Routledge, 2014.

2ENGINEERING LAW
any time until the offer is accepted by another person to whom the offer is made. Offer can
also be revoked if the contractual time is lapsed5.
Offer sometimes mistranslated with the invitation to treat. Invitation to treat is an
interest regarding certain thing where the person making it has a will to invite others to make
an offer. Advertisement, auction and the tender are fall in such category. In Patridge v
Crittenden [1968] 2 All ER 421, it was held that the term “For Sale” is not an offer, it is
merely an advertisement and fall under the criteria of invitation to treat.
When any party shows his interest regarding the offer and wanted to bind himself is to
be called that he has accepted the offer6. When an offer is accepted, there is an agreement
taken place. Acceptance can be made in written version or verbally or by the conduct of the
person who accepted the same. If an offer is accepted, the parties are become legally bounded
by each other. In Carlill v Carbolic Smoke Ball Co, it was held by the court that an offer
regarding the smoke ball has been made by the company and Mrs. Carlill had accepted the
same. Therefore, if there is any breach made regarding the offer, Mrs. Carlill has every right
to claim damage from the company.
Another condition of the contract is that there must be certain legal relation exists
between the parties. In Balfour v Balfour [1919] 2 KB 571, it was held by the court that
family agreement is like domestic agreement and there is no intention of them to be legally
5 Cartwright, John. Contract law: An introduction to the English law of contract for the civil
lawyer. Bloomsbury Publishing, 2016.
6 Liu, Tingting, Yan Wang, and Suzanne Wilkinson. "Identifying critical factors affecting the
effectiveness and efficiency of tendering processes in Public–Private Partnerships (PPPs): A
comparative analysis of Australia and China." International Journal of Project
Management 34.4 (2016): 701-716.